Damani and family saw their wealth upsurge by close to $96 million as Avenue Supermarts' shares peaked at Rs 2,559 apiece on February 13
Veteran stock market investor Radhakishan Damani-led Avenue Supermarts, which operates supermarket chain DMart, has approved the launch of a qualified institutional placement (QIP) by the promoters.
Based on the closing price on December 6, this (5.2 percent stake) would be worth around $823 million.
Trends on SGX Nifty indicate a positive opening for the broader index in India, with a 22 points gain or 0.19 percent. The Nifty futures were trading around 11,887-level on the Singaporean Exchange.
Given its robust fundamentals and its management's strong execution capabilities, the company should be able to sustain its premium valuations
"Radhakishan Shivkishan Damani, one of our promoters, has conveyed to us his intention to sell the equity shares...of the company to enable us to comply with the requirements of minimum public shareholding," Avenue Supermarts said in a BSE filing.
Derive Investments has bought 26.5 lakh equity shares of the company at Rs 144.5 per share through block deals on Monday, as per bulk deal data on the National Stock Exchange.
The scrip of newly-listed firm gained 3.33 percent to end at Rs 775.50 on BSE. During the day, it soared 7.5 percent to Rs 806.80.
Despite being the poster boy of organized retail, Future Retail’s operational efficiency is nowhere close to that of D-Mart’s.
With the listing at a premium of over 114 percent, the shares controlled by 61-year-old Damani, including through his family members and investment firms, are now worth a stellar USD 5.1 billion.
Damani is modest and wise person, he does not live in a fantasy, said Bhanshali.
The stock gave investors double the amount invested based on issue price of Rs 299.
Here's a report on what's made Radhakishan Damani a force of nature in the world of Indian business.
Avenue Supermarts' market capitalisation crossed more than Rs 40,000 crore. Even traded turnover on both exchanges was more than Rs 5,000 crore.
Apart from listing of small cap company Max Alert Systems (issue size of Rs 8 crore), D-Mart is only one that has listed at a premium of over 100 percent.
Avenue Supermarts, the operator of supermarket retail chain D-Mart on Tuesday, more than doubled investors’ wealth on debut itself.
Stock market veterans who have known Damani since his initial days on Dalal Street recall how he would carefully listen to market players more experienced than him
All eyes in the coming week will be on listing of D-Mart operator Avenue Supermarts, the company owned by ace investor Radhakishan Damani, on March 21. Analysts expect the stock to cross Rs 450 on listing day, against its issue price of Rs 299.
Nearly sixteen years on, RK Damani has every reason to feel satisfied despite the injury to his pride. VST shares are now trading around Rs 2700, valuing Bright Star's investment in the company (25.95 percent as on December 31, 2016) at roughly Rs 1100 crore
The IPO of Avenue Supermarts, which runs the D-Mart supermarket chain, is likely to see significant oversubscription. However, if the so-called GMP (grey market premium) is any indicator, the blockbuster listing might ensure healthy gains for HNIs if the oversubscription doesn‘t cross historic highs.
It won't be unwise to question whether the upcoming IPO of D-Mart might signal a market top as such a coincidence has occurred in the past.
A breakdown of Avenue Supermarts', promoted by Radhakishan Damani, issue details, company profile, financials, among others.
Analysts cite customer acquisition models, store ownership, promoter background, among other as its strengths. However, discounts, manpower intensive business, discount war among others could be the key risk.
While Amnish Aggarwal, Senior VP-Research at Prabhudas Lilladher, likened D-Mart‘s go-to-market strategy with global retailer Walmart. market expert SP Tulsian of sptulsian.com said the price band makes Avenue Supermarts IPO very attractive.
Damani has already acquired a cult status on Dalal Street — both as a trader and value investor — in little over a decade since wetting his feet in the stock market.